My Site Makes Over $2000 Monthly, Whats It Worth

by Ash67
29 replies
I was just wondering how much one of my website's is worth if I was to sell it now, it makes over $2000 a month at the moment and has a conversion ratio of 1:70.

It is ranked N0 1 on page 1 for its main keyword, and is still rising up the search engines for quite a few high traffic keywords. One of which has 165,000 searches a month and it is on page three of google for this keyword.

So if there's anyone reading this who knows what it may be worth, it would really be appreciated.

Thanks in advance for any replies.
#makes #monthly #site #worth
  • Profile picture of the author BloggingPro
    Well the going rate for a site is 8 to 10 months of its income. So a site getting $2000 a month in revenue should retail for what, $16k to $20k. Obviously there are variables. For example someone might see a ton of value in your domain name, product or service, and push the price higher when trying to get the site from someone else (if in Flippa auction).

    Whatever you do, if you do try to sell it for that amount please use an Escrow service.
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  • Profile picture of the author indexphp
    generally, you'd be able to sell it for between $15k-$25k

    it depends on your niche though, and how well you have set up the site to monetize. You can get more if it's in a good market (health/finance/etc..) and if you are building an email list.
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  • Profile picture of the author NoBSGuy
    Rule of thumb: If you can provide detailed net earnings and traffic stats for the past 12 months, then it`s probably well worth 12 times the money it generates monthly.
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  • Profile picture of the author indexphp
    generally, you'd be able to sell it for between $15k-$25k

    it depends on your niche though, and how well you have set up the site to monetize. You can get more if it's in a good market (health/finance/etc..) and if you are building an email list.
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  • Profile picture of the author NoBSGuy
    oops - double post - delete this post please...
    sorry for the incident
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    • Profile picture of the author Ash67
      Well thanks for the responses, I had been told it may be worth around $20,000, but its nice to have it confirmed.

      Cheers everyone
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      • Profile picture of the author jaybee2003
        Originally Posted by Ash67 View Post

        Well thanks for the responses, I had been told it may be worth around $20,000, but its nice to have it confirmed.

        Cheers everyone
        I agree with the others. Longevity = more money. If you can prove your site has been earning that every month for the past year, you could probably get more than 20K.
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        • Profile picture of the author Nightengale
          Another thing to think about: are you selling the list of customers along with the website?

          I, personally, wouldn't buy any site (or other type of business) without a list of past and present customers. Savvy business owners know that much of the value in any business is in its list of past and present customers.

          Yes, businesses have value outside of their customer database. Names, taglines, market position , trademarks, demonstrated monthly income (like you have), all have value. But your business is much more valuable if you include the customer database.

          Just food for thought....

          Michelle
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          • Profile picture of the author rockfuse
            The more money a site makes the more the multiplier its usually worth. Also niche and few other inputs are important to price it. But overall its usually worth only what someone is willing to pay for it as all things are. But, at 2k a month I would at least start it at 36k thats pretty fair depending on your niche and so on. Remember you can only go down not up when negotiating.
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          • Originally Posted by Nightengale View Post

            Another thing to think about: are you selling the list of customers along with the website?

            I, personally, wouldn't buy any site (or other type of business) without a list of past and present customers. Savvy business owners know that much of the value in any business is in its list of past and present customers.

            Yes, businesses have value outside of their customer database. Names, taglines, market position , trademarks, demonstrated monthly income (like you have), all have value. But your business is much more valuable if you include the customer database.

            Just food for thought....

            Michelle
            Thats what I was thinking! Michelle explained everything. However, it depends on your business model. Where are you getting the 2000$ revenue? All from product sales half from advertisement or adsense?

            If I own a website making 2000$ without much hassle, I would keep the website and invest more to get 5000$ per month.

            Lawrence
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  • Profile picture of the author wilken
    Another question would be, if you make this $2000 without big efforts every month, does it make sense to sell it for just ten months of revenue... So, it hugely depends on your particular situation. Some sites probably worth 100 times more than their monthly revenue and some even more.
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  • Profile picture of the author RyanJohnson
    I have always heard the 10x monthly income rule.... meaning $20K range like others here are stating. Now, if the site has been doing this consistently for a very long time (over a year) then you may be able to get even more out of it since it has a nice history.

    For example, if any business was making 10K a month for the past 6 months and another had been making 10k for the last 2 years, the older business is likely to get more leads/bites for higher money since it has a longer history.
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  • Profile picture of the author sbucciarel
    Banned
    Another consideration is how much work does it take to make $2,000 mnth and is the over $2,000 profit or do you have expenses?
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    • Profile picture of the author Targeted Traffic
      Originally Posted by sbucciarel View Post

      Another consideration is how much work does it take to make $2,000 mnth and is the over $2,000 profit or do you have expenses?
      Yes! a very good question. How much effort did it actually take? and is $2,000 already the net income?
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  • Profile picture of the author jostified
    Well, if you can provide the prospective buyer with your google analytics details (most would be buyers trust analytics stats) and the money earning prove, you are sure to sell it for at least times 10 of its currently monthly revenue. In that case, you could bank 20k or more from it.
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  • Profile picture of the author jgant
    I'm curious where site valuation of 10 to 12 months revenue comes from. I've read this before and frankly it doesn't make sense. I understand something is worth what someone will pay, but I wouldn't part with a $2K/mo passive income site for $25K unless in dire financial need.

    Offline businesses are generally valued much higher than net income times 10 to 12 months. Why the difference with websites? Sure, a site's income can plummet and there's fewer barriers to entry, but it's not easy getting a site to consistently earn $2K / month, especially with little ongoing attention.

    I'd prefer building it up into a monster earner or dedicate just enough resources to it to maintain $2K a month. In 15 months I'd be happy I didn't sell because I'd have earned more than the $25K.

    You could reinvest $1,000 per month of that $2K and build it up to $3K, $4K or more per month. You'd hardly have to be involved.

    That's just me. Maybe $25K in cash is simply too attractive to pass it up for you.

    Anyway, present website valuation doesn't make sense to me, especially for solid and consistent passive earners.
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  • Profile picture of the author Gordon Taylor
    Originally Posted by Ash67 View Post

    I was just wondering how much one of my website's is worth if I was to sell it now, it makes over $2000 a month at the moment and has a conversion ratio of 1:70.

    It is ranked N0 1 on page 1 for its main keyword, and is still rising up the search engines for quite a few high traffic keywords. One of which has 165,000 searches a month and it is on page three of google for this keyword.

    So if there's anyone reading this who knows what it may be worth, it would really be appreciated.

    Thanks in advance for any replies.
    Easy, go to Flippa.com and find sites in your category.
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  • Profile picture of the author jcruz
    If you were owning a site making 2,000 a month passive income consistenty why would even want to sell it. It's a golmine, you could easily scale it and live off of the income for the rest of your life. But it's your life, i'm just saying.
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    • Profile picture of the author phowell23
      Originally Posted by jcruz View Post

      If you were owning a site making 2,000 a month passive income consistenty why would even want to sell it. It's a golmine, you could easily scale it and live off of the income for the rest of your life. But it's your life, i'm just saying.
      True, but without knowing the niche or more about the website who knows if the site may have topped out at $2,000 (we also don't know if that's $2,000 revenue or pure profit - big difference) and it's on the way back down. Cash out now and you got about $20,000 to put towards other projects. Just a different side of the story .
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  • Profile picture of the author himanuzo
    Formula:
    price = earning/mo x 5-10. Depends on stability of your website.
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  • Profile picture of the author JoshTara
    Why would you consider selling one on your cashflow streams for some instant gratification? $2,000 a month is no joke. Selling it for 20,000 seems like an awful idea. Does this site require a lot of maintenance?
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  • Profile picture of the author xavierfok
    its worth about a year worth of income.
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  • Profile picture of the author johnny_h
    If you want to get $20k for that site, no matter how old it is, don't sell it through flippa. Find a reputable website broker or business broker that will help you sell it. On Flippa you'd be lucky to get $10k - $12k for a site making $2k monthly.

    Also, consider keeping that and banking an additional $24k in 2012!
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  • Profile picture of the author derricks4
    Where is the money coming from? Is it adsense, affiliate marketing, products? Is it drop-ship or inventory? Buyers will pay a good amount of money, but it needs to have 1 of 2 things:
    Growth & future earning potential
    or Ease of Use

    So, they're willing to work harder for a site that has the potential to make more $ than they will be for a site that is pretty much peaked out.
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  • Profile picture of the author Kashi456
    It would be worth 10x as much so in your case its $20,000
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  • Profile picture of the author Murlu
    I generally use this formula:

    Monthly Income x 12 x 2

    So, it would be $2000 x 12 months (year) x 2 (2 years of running).

    The site, in this case, would be $48,000.

    Of course, that's a little high but think about it. It's your asset, if you held on to it for 2 years than you're going to make that if it's a quality website. Plus, you said that it's still gaining traction in a lot of searches so that $2000 can still go up.

    I say base it on 2 years because you want to have enough income from the sale to get a new site up and running which may take an entire year, ya know?
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  • Profile picture of the author jerytohn
    You can try to sell it any price you want. But buyers are normally willing to buy at 10 - 20 times the monthly income.
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  • Profile picture of the author J Bold
    I've seen people say sites can go for 1-3 years of income, but you typically need at least a year of solid earning history for that.

    More accurately, I think those that say from 3-10 months are more or less right.

    In the end, though, it's worth what someone will pay for it.

    For example, say you wanted some fast money all at once, you could easily sell it for $10K, if you were desperate for some money right away.

    Otherwise, you could definitely probably get somebody to bite at upwards of $20K or even more, depending on how and where you went looking for sellers. It would probably take a bit longer to get that amount, though, so it all depends on how patient you are and finding that perfect buyer that has the money and is willing to pay it.
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  • Profile picture of the author Ash67
    Well thanks everyone for all the replies,

    I have no interest in selling this website as its making me good money each month, I just wondered what it may be worth if I had to sell it.

    It actually makes between $2000 to $2500 each month, with only $200 a month being paid to my SEO people who help keep it at the NO 1 position in google.

    I'm too lazy to do it myself so I employ others to do it for me, and no I don't build an email list, in this niche it doe's not work, Ive tried it.

    Thanks for all the advice and information.

    Cheers
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